Residential Land Values in South East

For the southeast regions of England, we see a number of things transpiring when it comes to residential land. For example, in Sevenoaks, planning restrictions and limited supply have resulted in few sales. For the sales we do see, most have been limited to single plots. For Tunbridge Wells, development along the A264 Pembury Road continues. In fact, plans for redevelopment of a particular development owned by a Council just on the edge of the town centre is being considered.

For both Malling and Tonbridge, development for Kings Hill is being planned while development for Snodland is actually underway. Another development being built is seen along the A26, which is near Tonbridge town centre. These Stone and McCarthy developments are followed by a number of schemes for small infill sites. Then if you look at Shoreham, you would see that the majority of the units have been sold while further development options are rare.

Heading to Maidstone town centre, a number of Brownfield sites that adjoin the River Medway are being redeveloped. In addition, several large schemes are currently being considered. For example, just off the A26 Tonbridge Road, a school site is under redevelopment. In addition to this, within the town centre, a surplus NHS building was recently sold. For this particular region within southeast England, we see a noted increase in development schemes, specifically in the villages of Headcorn and Harrietsham located around Maidstone.

For Horsham, the number of larger scale development projects is limited. The only real exception would be Bolnore Village were we see some work continuing. However, for Mid Sussex, development opportunities are rare. Now, in Worthing, the site of the Warnes Hotel is doing quite well but keep in mind that the type of housing going up in this area are seafront homes or luxury apartments. In the Reading area, demand for flats and residential homes has declined. However, it seems that need for residential housing is still in high demand, thus causing land values to maintain. Even in the Berkshire area, we see the same trends.

One area experiencing drastic building land shortages is Oxford. Being restricted by Green Belt policies, this area is in a challenging position. To get through the challenge, ongoing discussions between the County and City Councils are occurring. The concern is specific to additional housing with the focus being on a lack of transportation links and inadequate infrastructure.

Oxford does not have very many bulk sites currently available. In fact, the largest being reported is just 0.55 of a hectare located in Kennington. The price for this particular piece of land is believed to be just under £3.25 million. To date, the extent of MOD land in this part of England has not yet been determined. Then Hampshire also has a shortage of land despite it being a buyer's market. Overall, land value has stayed the course with just slight increases. Then, flat development in Basingstoke has been exhausted along with Southampton.

If you look at the Medway Towns, we see a number of land sales specific to infill sites and small schemes. Currently, plans are being reviewed for additional development in areas of Rochester, St. Mary's Island, Strood, and Gillingham's countryside and riverside. In Gravesend, larger schemes are coming. These schemes will include a school site to the south being used for a social housing development and a Brownfield site being used that adjoins the town centre and hospital.

In the region of Dartford, land sale activity is busy with a noted increase in price. For example, to the edge of the town centre is the former West Hill Hospital, which has now been sold for residential development. Then in Bexley, the former Maypole School has also been sold but in this case, for apartments. To help with the regeneration of Dartford's town centre, more substantial and longer-term residential development projects are being planned. Even an area near Bluewater is being developed for the next phase of the Waterstone Park scheme.

While Dartford is booming, Buckinghamshire is seeing few sales. Then, the report suggests that Milton Keynes and Aylesbury Vale are seeing values of residential land softening. Most people believe the reason for this is from the South East of England Regional Assembly's successful campaign in which more affordable housing would be created. The belief is enforced from an ongoing stagnation of housing prices. Keep in mind that development is still restricted because of Green Belt policies. This means that only small sites are being sold on the market. The problem is that without affordable housing and high demand, current values will stay level without growth.

Finally, you have areas or Bognor, Arun, Crawley, and Chichester. In Bognor, a few new flats have been developed on the seafront at Marine Park Gardens. Arun is now in the final development state of the East Bank. For Crawley, a new residential development has been planned near the Leisure Centre. In addition, building at the former special school at Ifield is underway. In fact, several of the flats being constructed have already been reserved. Then, a slower residential market is being seen in Chichester, primarily because of Pass Developments still being marketed.

- James M

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